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1. will the cost of carry model work for an agricultural market? 2. Suppose the forward price is greater than the theoretical cost of carry

1. will the cost of carry model work for an agricultural market?

2. Suppose the forward price is greater than the theoretical cost of carry price? Describe the "forward carry" arbitrage strategy.

3.Suppose the interest rate in the USA is less than the rate in the U.K. Do you think the forward exchange rate (in dollars/pound) is higher or lower than the spot rate?

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